Fixed Income

Highlights from the week of May 6 – May 12, 2022.

As investors grapple with a new era of macroeconomic uncertainty, liquidity is king in the near term.

Following the bond market’s recent beating, term yields have already priced in aggressive Fed rate hikes, positioning core bonds to effectively diversify credit risk.

Knowing the stakes, the Fed is likely to keep surprises to a minimum.

In the drive for ESG investing, a gap has arisen between corporate bond and securitization markets. We see this as an opportunity to blaze new trails and influence better outcomes for investors, the environment and society.

The U.S. Federal Reserve met expectations and increased interest rates by 25 basis points.

The market’s expectations for curve flattening may be excessive, as the timing of rate hikes and the aggressiveness of the Federal Reserve are still open to debate.

Matthew Toms, CFA, Chief Investment Officer of Fixed Income, shares our outlook for the markets for the first half of 2022. 

The market’s curve flattening expectations may be excessive, as the timing of the hikes and aggressiveness of the U.S. Federal Reserve are still open to debate.